Service tax on feeds processing fee

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Querist : Anonymous

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Querist : Anonymous (Querist)
13 November 2015
Dear Member(s)

A pvt ltd comp has entered into contract for give plant to other party to manufacture of Feed/ cattle feeds(tax free) & will receive processing fee (as rent of plant )


please give me ur valuable advice, what would be service tax liability of comp.(processing fee receiver)


Regards



14 November 2015 Service tax applicable on renting of plant and machinery.

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 November 2015

Thanks for ur kind advice..

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 November 2015 but the other party received labour/ all type of assistance from comp.(1 st party)


So whether is cover as work contract.

20 November 2015 Then it amount to manufacturing for which no service tax payable.

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 November 2015 Please brief it sir.

20 November 2015 No service tax applicable on manufacturing activity only excise duty applicable.

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 November 2015 but here Manufacturing Activity done by other Party & will pay proceesing fee against usage of labour & Machinery.

20 November 2015 It is a manufacturing activity even such activity carried out by job worker is exempted from service tax. Refer serial No. (f) of negative list.


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